TGW with Successful Retrofit for Music Retailer Thomann

The TGW Logistics Group supports the strong growth of the music store Thomann in Treppendorf, Bavaria, as a long-standing intralogistics partner, automating and expanding the small parts warehouse. The order processing time has been reduced to 20 minutes. The expansion took place during ongoing operations.

(Marchtrenk/Treppendorf) The mecca for many musicians is Treppendorf. Thousands travel each year to the small town in Upper Franconia, which has only 201 inhabitants. Their destination: the music store Thomann. Around 90,000 items are permanently in stock at the logistics center. Once a customer has chosen an instrument in the shop, they can load it into their trunk just half an hour later – with the lion’s share of revenue generated through the online shop.

Online customers receive their goods not only quickly but usually in just one package – regardless of whether they ordered one item or ten. This is sustainable and saves shipping costs, but it presents a logistical Herculean task: consolidating small and large items, fast and slow movers.

Double-Digit Revenue Growth

The long-standing intralogistics partner of Thomann is the TGW Logistics Group. In 2008, TGW began as the general contractor for the automation of the South Shipping Center (VCS) in Treppendorf. “When orders and item quantities rise sharply at the same time or requirements change, companies need to consider expansions sooner rather than later to be ready at the right time,” says Markus Kammerhofer, Director Sales Retro at TGW. “At Thomann, revenue has increased in double digits over the past few years, so the facility commissioned in 2008 could never handle the current volume,” adds Norbert Groth, Technical Director of Logistics at Thomann. In addition to the South Shipping Center, the North Shipping Center (VCN) has also been operational since 2017.

In 2009, Thomann had a facility that could process 20,000 packages a day. A four-aisle automated small parts warehouse (AKL) with 70,000 container storage locations and picking for fast movers was built, and TGW installed eight Mustang-type stacker cranes. Additionally, after two expansion phases, an automated pallet warehouse with five aisles and 18,000 storage locations was available to Thomann in 2010. The heart of the facility was a Natrix sorter, and employees packed the goods at 32 packing stations.

Successful Expansion Concept

Hans Thomann was proud of the facility’s performance after the 12 million euro investment: output was 40 to 50 percent higher compared to before. The processing time was reduced to 28 minutes. The expansion concept from TGW was successful. The picking process was optimized for various product groups of different sizes – from instrument cables to digital pianos. The facility was controlled by TGW software. The approximately four million customers could choose their desired goods from 65,000 items. However, both the number of customers and the number of items increased. Hans Thomann therefore decided to build the North Shipping Center (VCN) – again with TGW as the partner of choice.

This area went into operation in 2017/18. The order for the high-bay warehouse included 21,000 pallet storage locations, along with a shuttle system with six aisles and 110,000 storage locations for small parts. Thomann also invested in automated carton erectors and closers, as well as efficient goods-to-person picking. Furthermore, TGW modernized the WMS. Today, Thomann uses TGW Warehouse Software for warehouse management system (WMS), warehouse control system (WCS), and material flow controller (MFC).

Green Light for Further Projects

Because the expansion phases with TGW were successful, Thomann gave the green light for further projects in 2020. The high-bay warehouse was to be expanded to improve replenishment. Additionally, at the beginning of 2022, a new goods exit loop with automatic labeling for up to 2,000 packages per hour went into operation at the VCS. As the COVID-19 pandemic accelerated e-commerce business, Thomann is considering further expansion projects.

Thanks to the expansions, Thomann has reduced the processing time from 28 minutes to about 20 minutes – all while increasing the number of items from 65,000 to 90,000. Instead of four million customers, more than twelve million are now supplied with goods from Treppendorf across Europe.

Most Work on Weekends

“The top rule is: ongoing operations must not be disturbed during expansions and modernizations,” emphasizes Norbert Groth. According to experts from TGW’s retrofit department, key success factors for project implementation include detailed planning, intensive testing, a comprehensive specifications document, precise definition of processes, and a well-thought-out schedule. A so-called big bang was never possible in Treppendorf. Because e-commerce business does not allow for weeks of operational downtime and a six-day workweek in the warehouse is common, the gaps had to be filled between Friday evening and Monday at six o’clock.

Photo: © Thomann